In an otherwise struggling Silicon Valley office market, Apple bought a Cupertino office building for $70 million.

As first reported by Apple Park, the iPhone maker has purchased a four-story office building at 10200 South Anza Boulevard, about two miles from the company’s Cupertino world headquarters at Apple Park. Mercury News.

Documents filed with Santa Clara County show it was an all-cash purchase. The building totals approximately 161,000 square feet and sits on approximately 1.3 acres near the corner of South De Anza Avenue and Cali Avenue, just a few blocks from Stevens Creek Avenue. Rubicon Point Partners, a San Francisco-based investment firm that bought the building in 2019 for $107.5 million, is the seller.

The property sold at a premium in 2019 as it was in a prime location. But even in the wake of the pandemic, the building, like countless others, has seen its value drop after Bay Area employees showed a continued preference for remote work.

In July 2020, the building’s official valuation was $109.7 million, reflecting the price Rubicon paid about a year earlier. But as the coronavirus raged, the building’s value dropped to $92.8 million in July 2021 before recovering slightly to $94.6 million in mid-2022, according to county assessor’s office documents. The $70 million Apple paid meant the building’s value had plummeted 35 percent compared to when it was purchased four years ago.

The deal shows that big tech companies are willing to expand.The location accommodates 800 employees apple Recently announced plans to redevelop its Cupertino headquarters to add 140,000 square feet of office space. Other companies, however, are cutting millions of square feet of space.For example, Google announced that it will sell 1.4 million square feet of space silicon valley and discontinue its downton west project san jose.

Pawan Naidu

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